Washington's push to finally define U.S. crypto rules is running into resistance from inside the industry itself, as a flagship market structure bill stalls in the Senate.
Recent remarks from Treasury Secretary Scott Bessent signal that the window for compromise may be narrowing, even as negotiations continue behind closed doors.
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What the CLARITY Act aims to do
The Digital Asset Market Clarity Act , commonly known as the CLARITY Act, is designed to establish a federal framework for regulating cryptocurrencies in the United States after years of overlapping enforcement and legal uncertainty.
The bill would formally divide oversight responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission, placing most spot market activity for digital commodities such as Bitcoin under the CFTC, while leaving the SEC with authority over securities-like tokens and investment contracts.
It also builds on last year's GENIUS Act by setting guardrails for stablecoins, custody standards and compliance obligations for crypto intermediaries.
Supporters in Washington argue the legislation is needed now to encourage institutional adoption, protect consumers and prevent regulatory arbitrage as other jurisdictions move faster to integrate digital assets into their financial systems.
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Coinbase's stance and why the bill stalled
Momentum behind the CLARITY Act slowed in January after Coinbase withdrew its support for the Senate draft, prompting lawmakers to delay a planned committee markup.
Coinbase Chief Executive Officer Brian Armstrong publicly objected to provisions that would restrict rewards paid on stablecoin holdings and warned the bill could weaken the CFTC's role in favor of broader SEC authority.
"We'd rather have no bill than a bad bill," Armstrong wrote at the time.
He added that the proposal had "too many issues" to support in its current form.
Lawmakers and industry groups have since struggled to bridge differences between crypto firms that view rewards as essential for competitiveness and banks that warn such incentives could pull deposits out of the traditional financial system.
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What Scott Bessent said and what comes next
Speaking in an interview on Fox Business with Maria Bartiromo, Bessent said recent market volatility only strengthened the case for passing the bill quickly.
"What we're seeing in the crypto market over the past few months means more than ever that the U.S. needs market structure, we need clarity, and we need to get this across the line this spring," he said.
Bessent criticized what he described as "recalcitrant actors" resisting compromise, adding that both banks and other crypto firms were increasingly aligned against them.
"For crypto to remain a viable digital asset and move forward, we need to get this Clarity Act done," he said, expressing optimism that bipartisan support could still bring the legislation back for markup.
Senators involved in the negotiations have indicated further closed-door meetings are expected, as lawmakers attempt to resolve disputes over stablecoin rewards, regulatory scope and national security concerns before the spring legislative window closes.
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This story was originally published by TheStreet on Feb 10, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
